At a glance
BDCZ charges 0.85% a year, above the 0.26% average of the 7 funds most like it (the most expensive of 8). It has $20.6M in assets, the 8th largest of that group; it paid 12.08% of its price in distributions over the past 12 months, quarterly. Over the past year it returned −6.2% with distributions reinvested (S&P 500: +11.5%), the weakest of those 8 funds; over three years it returned +4.1% a year. At its worst it fell 55.6% in the 2020 crash (S&P 500: 33.7%) and 23.1% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 12 months and 10 months after the lows.
The short version
ETRACS MarketVector Business Development Companies Liquid Index ETN (BDCZ) is a UBS exchange-traded note linked to an index of business development companies (BDCs), which lend to smaller private firms. As UBS debt, not a fund, it owns no assets and depends on UBS's ability to pay. Its draw is income: a yield of about 12.1% over the past year as of October 27, 2026, paid quarterly, though its 0.85% fee is far above financial-sector ETFs.
Price history
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BDCZ -6.2% over the year to Oct 27, 2026, total return with distributions reinvested.
How it has behaved
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | Since start | |
|---|---|---|---|---|---|---|
| BDCZ price data to Oct 27, 2026 | -6.4% | -6.2% | +4.1% | +3.3% | +6.5% | +5.9% |
- Over the year to Oct 27, 2026, BDCZ returned -6.2%, 8th of 8 among similar funds.
- Its 5-year annualized return was +3.3% and its 10-year +6.5%.
- In the 2020 COVID crash it fell 55.6% and regained its old high 11.6 months after the low.
- Its worst full calendar year was 2020 (-11.2%); its best was 2021 (+34.0%).
- The deepest fall in its price history was 55.6% (Feb 20, 2020 to Mar 23, 2020), recovered by Mar 11, 2021.
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | -6.4% |
| 2025 | -3.8% |
| 2024 | +12.2% |
| 2023 | +25.3% |
| 2022 | -7.4% |
| 2021 | +34.0% |
| 2020 | -11.2% |
| 2019 | +25.9% |
| 2018 | -7.8% |
| 2017 | +0.3% |
| 2016 | +21.5% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Before this security existed |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 55.3% over that stretch · deepest drop along the way 55.6%, back to its old high 11.6 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 14.5% over that stretch · deepest drop along the way 23.1%, back to its old high 9.9 months after the low |
Dividends and income
Show as a table
| Year | Per share | Change |
|---|---|---|
| 2026 (to date) | $1.7000 | |
| 2025 | $1.7900 | -0.6% |
| 2024 | $1.8000 | +4.0% |
| 2023 | $1.7300 | -11.2% |
| 2022 | $1.9480 | +29.9% |
| 2021 | $1.5000 | -8.0% |
| 2020 | $1.6300 | -4.7% |
| 2019 | $1.7100 | -0.6% |
| 2018 | $1.7200 | -5.0% |
| 2017 | $1.8100 | +0.6% |
| 2016 | $1.8000 |
How it works
BDCZ is not a fund. It is an exchange-traded note (ETN), which is a promise from UBS to pay the return of the MarketVector Business Development Companies Liquid Index, minus fees. No specific assets back that promise. UBS does not hold the index's shares for investors. What holders receive depends on the index and on UBS staying able to pay. UBS can also redeem the notes early, which could cash holders out at an unwelcome time.
The index follows business development companies (BDCs). These are publicly traded firms that lend to and invest in small and midsize private businesses. BDCs generally pass most of their income to shareholders, which helps explain the note's high quarterly payouts. The word “Liquid” in the index name suggests a focus on BDCs whose shares trade more actively. The detailed rules for choosing, weighting and rebalancing companies are set by MarketVector, the index provider, and are not summarized here.
An ETN files no holdings reports, so holders cannot check a list of what is in the portfolio the way fund shareholders can. An ETN's market price can also drift away from the value of its index. That is worth watching in a note this small, at about $20.6 million in assets.
What it really costs
- BDCZ charges 0.85% a year, versus an average of 0.26% for the similar funds below (8th of 8, cheapest first).
Structure and tax notes
- An exchange-traded note: unsecured debt of the issuing bank, not a fund. It owns no assets on investors’ behalf; it pays the index return minus fees only as long as the issuer can pay, so the bank’s credit matters, and the issuer can redeem the notes early.
In a retirement portfolio
Its high quarterly income comes with a narrow focus on BDCs, UBS credit risk, a 0.85% fee and a history of steep drops.
BDCZ could add high income to a small corner of a portfolio: a yield of about 12.1% over the past year as of October 27, 2026, paid quarterly. It costs 0.85% a year, and payments rely on UBS's credit as well as the BDC market. In the 2020 COVID crash it fell 55.6% in about a month, from February 20 to March 23, 2020, and took 11.6 months to recover. In 2022 it dropped 23.1% and needed 9.9 months to regain its peak. Its worst calendar year was 2020, down 11.2%. It launched in 2015, after the 2008 crisis.
A retiree may need to sell shares or lean on that income in a bad year. Drops like these could force sales at low prices, and BDC payouts can shrink when borrowers struggle. Past results don't predict the future, and a plan should look at the whole portfolio, not one fund.
Who it may suit — and who should look elsewhere
May suit
- Income seekers wanting BDC exposure, with a yield of about 12.1% over the past year as of October 27, 2026, paid quarterly.
- Investors who accept UBS credit risk in exchange for one-ticker access to the MarketVector Business Development Companies Liquid Index.
- Those who can keep it a small slice and sit through drops like its 55.6% plunge between February and March 2020.
Look elsewhere if
- Cost-focused investors: its 0.85% fee is the highest in its comparison group, whose other funds average 0.26%. XLF charges 0.08%.
- Those who want to see holdings or avoid issuer risk. As UBS debt, BDCZ owns nothing for investors, and UBS can redeem it early.
- Investors seeking broad financial-sector growth: BDCZ returned -6.2% over the year to October 27, 2026, last in its comparison group.
Close alternatives
Matched by legacy category (no holdings report for this fund).
| Fund | Cost | Net assets | 1 yr | 3 yr |
|---|---|---|---|---|
| BDCZ this fund | 0.85% | $20.6M | -6.2% | +4.1% |
| XLF Financial Select Sector SPDR Fund | 0.08% | $51.80B | +9.9% | +22.7% |
| VFH Vanguard Financials ETF | 0.09% | $13.10B | +10.0% | +23.4% |
| IYF iShares U.S. Financials ETF | 0.39% | $3.70B | +6.7% | +24.4% |
| KBWB Invesco KBW Bank ETF | 0.35% | $3.70B | +17.4% | +37.5% |
| KRE SPDR S&P Regional Banking ETF | 0.35% | $3.40B | +21.5% | +26.5% |
| EUFN iShares MSCI Europe Financials ETF | 0.48% | $3.00B | +16.9% | +34.6% |
| FNCL Fidelity MSCI Financials Index ETF | 0.084% | $2.10B | +6.5% | +23.6% |
Questions investors ask
Is BDCZ good for retirement income?
It pays high income but carries real risks. BDCZ's yield over the past year was about 12.1% as of October 27, 2026, paid quarterly. However, it fell 55.6% in the 2020 COVID crash and took 11.6 months to recover. Its payments also depend on UBS's ability to pay, not just on the BDC market. With a 0.85% annual fee, it may suit investors who keep it as a small part of a broader income mix rather than a main source.
Does BDCZ pay monthly dividends?
No. BDCZ pays quarterly. It is an exchange-traded note rather than a fund, so its payments come from UBS under the note's terms, not as fund dividends. Over the year to October 27, 2026, it paid about $1.70 per note, a yield of about 12.1%. Payments are tied to an index and are not set in advance, so they can vary.
Is BDCZ an ETF or an ETN?
It is an ETN, not an ETF. An ETF is a fund that owns assets for its shareholders. BDCZ is unsecured debt from UBS, meaning no specific assets back it. UBS promises to pay the return of the MarketVector Business Development Companies Liquid Index, minus fees. The note owns no BDC shares on investors' behalf, so if UBS could not pay, holders could lose money even if the index did well. UBS can also redeem the notes early.
What's the difference between BDCZ and XLF?
They cover very different parts of finance. XLF, the Financial Select Sector SPDR Fund, is a fund covering the broader financial sector. BDCZ is a UBS note that tracks only business development companies. XLF charges 0.08% a year versus 0.85% for BDCZ. It is also far larger, at about $51.8 billion versus $20.6 million. XLF returned 9.9% over the year to October 30, 2026. BDCZ returned -6.2% over the year to October 27, 2026. BDCZ's appeal is income, with a yield near 12.1% over the past year.
How has BDCZ performed over the long term?
Modestly, with big swings along the way. Based on market prices as of October 27, 2026, BDCZ returned about 6.5% a year over 10 years, 3.3% a year over five years and 4.1% a year over three. Its strongest calendar year was 2021, up 34.0%. Its weakest was 2020, down 11.2%, a year that included a 55.6% plunge. Through October 27, 2026, it was down 6.4% year to date.